XRP Red Hot Before Hour G: Whales Are Running, But The Reduction Could Trigger a 78% Rise?

Data shows that on August 21, the long account ratio of XRP for top Binance traders fell from 78.12% to 74.15%, while the short ratio increased from 21.88% to 25.85%. This pushed the long/short ratio down from 3.57 to 2.87 in less than 24 hours. In terms of open positions, long positions account for 65.98%, while shorts account for 34.02%, bringing this ratio down to 1.94, the lowest in many weeks. This adjustment indicates significant caution in the context of the market awaiting Powell’s speech at the Jackson Hole symposium. On-Chain Data Shows a Fragmented Market Data on-chain shows that wallets holding 10–100 million XRP have sold approximately 460 million tokens in the past week, contributing to a fall in price of nearly 6%. Meanwhile, smaller wallets with 1–10 million tokens have accumulated 130 million XRP during the same period. This divergence highlights the contrasting sentiment among different groups of investors.

The holdings of institutions have also weakened, with the largest wallets reducing their exposure by nearly 80%. Open interest in futures has fallen from $10.9 billion to $7.5 billion, while the long/short ratio has dropped below 1. The price has broken below both the 20-day and 50-day moving averages, forming a descending triangle pattern that could push the token down to $2.40 if confirmed. XRP Forms Falling Wedge Pattern Before Breakout Despite the pessimistic sentiment from traders, the XRP price chart on the four-hour time frame shows a clear “falling wedge” pattern. This is a bullish technical pattern in which the price moves between two converging downward sloping lines, often signaling the potential for a breakout to the upside.

At the time of the chart, XRP is trading near the $2.90 level, testing the lower boundary of the wedge pattern. If this pattern is confirmed, the expected increase could reach nearly 78% from the current price, targeting around $5.20. This forecast aligns with the upper resistance area marked on the chart. The exponential moving average (EMA) for 50 periods is currently around $3.02, slightly higher than the spot price. The fact that the trading price is below this level reflects short-term weakness, but also sets the stage for a bullish reversal when XRP breaks above this level with strong momentum. The RSI is currently at 40.54, with a moving average of 38.56, placing XRP near an oversold state. This indicates that the downward momentum is weakening and creates conditions for the potential price recovery if buying pressure returns. Meanwhile, the trading volume data shows moderate activity, with recent declines indicating consolidation. A spike in trading volume will be necessary to confirm any breakout from the wedge pattern. Without more active participation, prices may continue to fluctuate within the range of the pattern before making a decisive move. Overall, the chart structure, wedge pattern, EMA position, and RSI conditions combine to highlight a setup where XRP could produce a significant bullish wave if the wedge pattern confirms volume support. The Market Is Larger Preparing for the Fed’s Guidance Risk sentiment across the cryptocurrency market remains fragile. Over 270 million dollars in leveraged positions have been liquidated this week, primarily in Bitcoin and Ethereum. Bitcoin is fluctuating around 113,000 dollars, while Solana and Dogecoin are also falling in price. The market is currently awaiting Powell’s speech, which will clarify the Fed’s stance on monetary policy. A hawkish tone could exacerbate the wave of selling, while any dovish signals could ease pressure on risk assets, including XRP.